When you’re thinking of selling your home and buying another, you face the inevitable question: Should I list my property first or buy my new home first?
Let’s take a look at both options.
If you attempt to buy a property before listing your home, you run into a couple of challenges.
First, sellers may not take you seriously as a potential buyer. After all, you haven’t put your own home up for sale. As far as they’re concerned, you might merely be testing the market.
Second, your property might not sell as quickly as you thought it would. If there is an early closing date on the home you purchased, you might end up owning, and paying a mortgage on both properties, at least until your home sells.
If, on the other hand, you list your property before buying a new home, sellers will know you’re serious. That puts you in a competitive position in the event of multiple offers.
Also, if your home sells quickly, you’ll have the peace-of-mind of knowing exactly how much of a new home you can afford. You’ll be able to shop with confidence.
Of course, like the first option, there is a chance that the closing dates won’t match and you’ll end up owning two properties for a period of time.
However, solutions such as bridge financing are available to help.
So, there is no perfect answer. A lot depends on the state of the local market.